National Highway Performance Program (NHPP) Implementation Guidance
U.S. Department of
|Subject:||Information: National Highway Performance Program (NHPP) Implementation Guidance||Date:||November 19, 2012|
|From:||John R. Baxter
Associate Administrator for Infrastructure
|In Reply Refer To:||HIPA-10|
Directors of Field Services
Director of Technical Services
On July 6, 2012, the President signed the Moving Ahead for Progress in the 21st Century Act (MAP-21) into law (P.L. 112-141). The attached NHPP Implementation Guidance provides policy direction on the National Highway Performance Program (NHPP) and provides information on funding, eligible activities, and specific requirements.
If you have any questions, please contact Mr. Peter Kleskovic (202-366-4652) or Mr. David Bartz (512-536-5906) of the Office of Program Administration.
National Highway Performance Program (NHPP) Implementation Guidance
The purposes of the National Highway Performance Program (NHPP) are (1) to provide support for the condition and performance of the National Highway System (NHS); (2) to provide support for the construction of new facilities on the NHS; and (3) to ensure that investments of Federal-aid funds in highway construction are directed to support progress toward the achievement of performance targets established in a State's asset management plan for the NHS.
Section 1106 of the Moving Ahead for Progress in the 21st Century Act (MAP-21) establishes the NHPP under 23 U.S.C. 119. Section 1105 of MAP-21 provides for the apportionment of funds under 23 U.S.C. 104.
Authorization Levels under MAP-21: Section 1101 of MAP-21 authorizes funds for the NHPP. Section 1105 amends 23 U.S.C. 104(b)(1) and provides for the apportionment of funds. The estimated amounts of NHPP are as follows:
FY 2013 $21,751,779,050 FY 2014 $21,935,691,598 TOTAL $43,687,470,648
MAP-21's approach to distribution of formula funds is based on the amounts of formula funds each State received under SAFETEA-LU. Once each State's total Federal-aid apportionment is calculated, amounts are set aside for Metropolitan Planning and the Congestion Mitigation and Air Quality Improvement Program, and the remainder is divided among the rest of the formula programs as follows: NHPP (63.7%), STP (29.3%), and HSIP (7.0%).
The Program Codes for these NHPP funds are as follows:
Period of Availability: NHPP funds are contract authority. NHPP obligations are reimbursed from the highway account of the Highway Trust Fund. NHPP funds are available for obligation for a period of 3 years after the last day of the fiscal year for which the funds are authorized. Thus funds are available for obligation for up to 4 years.
Obligation Limitation: NHPP funds are subject to the annual obligation limitation imposed on the Federal-aid highway program except for $639,000,000 in each of fiscal years 2013 and 2014 which are exempt pursuant to Section 1102(b)(12) of MAP-21.
Federal share: The Federal share for NHPP funds is governed by 23 U.S.C. 120. The Federal share is generally 80 percent, subject to the upward sliding scale adjustment for States containing public lands. The Federal share for projects on the Interstate System is 90 percent, subject to the upward sliding scale adjustment, unless the project adds lanes that are not high-occupancy-vehicle or auxiliary lanes. For projects that add single occupancy vehicle capacity, that portion of the project that increases single occupancy vehicle capacity will revert to the 80 percent Federal share participation level.
Certain safety improvements as listed in 23 U.S.C. 120(c)(1) may have a Federal share of 100 percent. This provision is limited to 10 percent of the total funds apportioned to a State under 23 U.S.C. 104.
The Federal share for workforce development, training, and education activities carried out under 23 U.S.C. 504(e) is 100 percent, except for projects funded by the Local Technical Assistance Program (LTAP). For projects funded under the LTAP, the 50 percent non-Federal share may be satisfied with up to 100 percent NHPP funds. This provision will be the subject of further guidance.
For fiscal years 2012 through 2021, the Federal share for the cost of constructing highways and access roads on the Appalachian Development Highway System, as provided in 40 U.S.C. 14501, with apportioned Federal funds is 100 percent. (Section 1528 of MAP-21). In order to use NHPP funds at the higher Federal share, Appalachian Development Highway System projects must meet NHPP eligibility and location criteria.
Projects incorporating Innovative Project Delivery as described in 23 U.S.C. 120(c)(3) may have an increased Federal share. This provision will be the subject of further guidance.
As provided for in Section 1116 of MAP-21, projects that demonstrate an improvement to the efficient movement of freight and are identified in a State freight plan are eligible for an increased Federal share of up to 95 percent for projects on the Interstate System and up to 90 percent for all other projects. This provision will be the subject of further guidance.
The Federal share for projects that are located on toll roads, and subject to the provisions of 23 U.S.C. 129 is limited to 80 percent. (Section 1512 of MAP-21)
For States that have not developed and implemented a State asset management plan by the beginning of the 2nd fiscal year after the establishment of the process, the Federal share for NHPP projects in that fiscal year is reduced to 65 percent. (Section 1106 of MAP-21; 23 U.S.C. 119(e)(5))
States may choose a lower Federal share on Federal-aid projects as provided in 23 U.S.C. 120.
Transferability of NHPP Funds: A State may transfer up to 50 percent of the amount apportioned for the fiscal year to any other 23 U.S.C. 104(b) apportionment for the State. However, under 23 U.S.C. 119(f)(1), the State must obligate and set aside a certain amount of NHPP funds for certain purposes if: 1) the State's Interstate System condition falls below the established minimum threshold, or 2) a certain percentage of the State's NHS bridge deck area is located on structurally deficient bridges. In these situations, the States may not transfer amounts that would cause the State to fall below the minimum obligation and set aside requirements. Also, transfer of NHPP funds cannot be used to off-set the transfer of funds from STP to NHPP required when a State's Interstate System condition falls below the minimum threshold, as per provision 23 U.S.C. 119(f)(1)(A)(2).
General: NHPP funds may be obligated only for a project on an "eligible facility" that is a project, part of a program of projects, or an eligible activity supporting progress toward the achievement of national performance goals for improving infrastructure condition, safety, mobility, or freight movement on the NHS and is consistent with the planning requirements of Sections 134 and 135. Projects must be identified in the STIP/TIP and be consistent with the Long-Range Statewide Transportation Plan and the Metropolitan Transportation Plan(s).
Under the NHPP, an "eligible facility" includes only those facilities located on the NHS, as defined in 23 U.S.C. 103, except as specified in the statute.
- Construction, reconstruction, resurfacing, restoration, rehabilitation, preservation, or operational improvement of segments of the NHS. The terms "Construction" and "Operational improvement" are defined in 23 U.S.C. 101(a).
- Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including scour countermeasures, seismic retrofits, impact protection measures, security countermeasures, and protection against extreme events) of bridges on the NHS.
- Construction, replacement (including replacement with fill material), rehabilitation, preservation, and protection (including impact protection measures, security countermeasures, and protection against extreme events) of tunnels on the NHS.
- Inspection and evaluation, as described in 23 U.S.C. 144, of bridges and tunnels on the NHS, and inspection and evaluation of other highway infrastructure assets on the NHS. This includes, but is not limited to, signs, retaining walls, and drainage structures.
- Training of bridge and tunnel inspectors, as described in 23 U.S.C. 144.
- Construction, rehabilitation, or replacement of existing ferry boats and ferry boat facilities, including approaches that connect road segments of the NHS. Eligible ferry approaches are described in 23 U.S.C. 129(b). Eligible ferry boats and facilities are described in 23 U.S.C. 129(c).
- Construction, reconstruction, resurfacing, restoration, rehabilitation, and preservation of, and operational improvements for, a Federal-aid highway not on the NHS, and construction of a transit project eligible for assistance under chapter 53 of title 49, if-
- the highway project or transit project is in the same corridor as, and in proximity to, a fully access-controlled highway on the NHS;
- the construction or improvements will reduce delays or produce travel time savings on the fully access-controlled highway described in clause (i) and improve regional traffic flow; and
- the construction or improvements are more cost-effective, as determined by benefit-cost analysis, than an improvement to the fully access-controlled highway on the NHS.
- Bicycle transportation and pedestrian walkways in accordance with section 217. The project or activity must be associated with an NHS facility.
- Highway safety improvements for segments of the NHS. Highway safety improvements include those improvements on the NHS that are eligible under 23 U.S.C. 148(a)(4). This includes truck parking facilities eligible for funding under section 1401 of the MAP-21. The term "Safety Improvement Project" is defined in 23 U.S.C. 101(a)(23).
- Capital and operating costs for traffic and traveler information monitoring, management, and control facilities and programs. The project or activity must be associated with an NHS facility.
- Development and implementation of a State asset management plan for the NHS in accordance with this section, including data collection, maintenance, and integration and the cost associated with obtaining, updating, and licensing software and equipment required for risk-based asset management and performance-based management.
- Infrastructure-based intelligent transportation systems capital improvements. The project or activity must be associated with an NHS facility.
- Environmental restoration and pollution abatement in accordance with section 328. The project or activity must be associated with an NHS facility.
- Control of noxious weeds and aquatic noxious weeds and establishment of native species in accordance with section 329. The project or activity must be associated with an NHS facility.
- Environmental mitigation efforts related to projects funded under this section, as described in subsection Environmental Mitigation. The project or activity must be associated with an NHS facility.
- Construction of publicly owned intracity or intercity bus terminals servicing the NHS.
- Workforce development, training, and education activities that are in accordance with 23 U.S.C. 504(e).
- Fringe and corridor parking as provided for in 23 U.S.C. 137. The project or activity must be associated with an NHS facility.
The following activities were made eligible by other provisions:
The following activities were eligible under the NHS program contained in 23 USC 103(b)(6) prior to enactment of MAP-21 but were not carried forward into the NHPP. These continue to be eligible under the NHS program.
- Transportation planning in accordance with sections 134 and 135.
- Highway research and planning in accordance with chapter 5.
- Highway-related technology transfer activities.
- Carpool and vanpool projects.
STATE PERFORMANCE MANAGEMENT - This provision will be the subject of further guidance.
Performance Management: Within 18 months of enactment (October 1, 2012), the Secretary will promulgate a rulemaking in consultation with States, MPOs, and other stakeholders establishing:
- Minimum standards for States to use in developing and operating bridge and pavement management systems.
- Performance measures for Interstate and NHS pavement condition, NHS bridge condition, and Interstate and NHS performance.
- Minimum conditions for Interstate pavements that may vary geographically.
- Data elements necessary to collect and maintain standardized data to carry out a performance-based approach.
States will establish targets for these measures within 1 year of the final rule on national performance measures, to be periodically updated.
- States will report to USDOT on progress in achieving targets within 4 years of enactment and then every 2 years thereafter. MPOs will report to USDOT on progress in their Metropolitan Transportation Plan (4 or 5 year frequency). (MAP-21 § 20005)
- If a State does not meet or make significant progress toward targets for two consecutive reporting periods, the State must document in its next report the actions it will take to achieve the targets. (Section 1106 of MAP-21; 23 USC 119(e)(7))
Asset Management: Within 18 months of enactment (October 1, 2012), the Secretary will promulgate a rulemaking establishing the process for States to use in developing a risk-based, performance-based asset management plan for preserving and improving the condition of the NHS. States are encouraged to include all infrastructure assets within the right-of-way corridor.
The plan must include at least the following:
- Summary list, including condition, of the State's NHS pavements and bridges
- Asset management objectives and measures
- Performance gap identification
- Lifecycle cost and risk management analysis
- Financial plan
- Investment strategies
Each State's process must be reviewed and recertified at least every 4 years. If certification is denied, the State has 90 days to cure deficiencies. If a State has not developed and implemented an asset management plan consistent with requirements by the beginning of the 2nd fiscal year after the establishment of the process, the Federal share for NHPP projects in that fiscal year is reduced to 65%.
INTERSTATE SYSTEM AND NHS BRIDGE CONDITION - This provision will be the subject of further guidance.
Interstate conditions: The Secretary will establish the minimum level of condition for Interstate pavements, which may vary by geographic region. If Interstate conditions in a State fall below the minimum set by the Secretary during two consecutive reporting periods, the State must at a minimum devote the following resources to improve Interstate pavement conditions during the following fiscal year (and each year thereafter if the condition remains below the minimum):
- NHPP funds in the amount of the State's FY 2009 Interstate Maintenance (IM) apportionment, to increase by 2% per year after FY 2013
- Transfer STP funds equal to 10% of the amount of the State's FY 2009 IM apportionment to NHPP. This transfer cannot be from suballocated amounts of STP funds.
Bridge conditions: MAP-21 establishes a minimum standard for NHS bridge conditions for the purpose of establishing a penalty threshold. If more than 10% of the total deck area of NHS bridges in a State is on structurally deficient bridges for three consecutive years, the State must devote NHPP funds equal to 50% of the State's FY 2009 Highway Bridge Program apportionment under SAFETEA-LU to improve bridge conditions during the following fiscal year and each year thereafter if the percentage of deck area on structurally deficient bridges remains above 10%.
Eligibility under the NHPP is contingent upon projects supporting progress toward the achievement of the national performance goals established under 23 U.S.C. 150. This is determined by whether the project is included in the State's asset management plan that is required under 23 U.S.C. 119(e).
MAP-21 Section 1106(b) provides that, for up to 18 months after the 23 U.S.C. 150(c) rulemaking has been promulgated, a State that has not yet implemented an approved asset management plan and established performance targets may obligate NHPP funds for projects that otherwise meet the requirements of 23 U.S.C. 119(d).
The Secretary may extend this transition period if the Secretary determines that the State has made a good faith effort to establish an asset management plan and performance targets.